How long will it take to boost my credit after I pay off my one credit card?
I owe $801 Bank of America and tomorrow I am just going to pay off the balance owed. Through out the past year I missed alot of payments (to the tune of 60 days). They closed the card so even if I payed the balance to $0 I cannot use the card at all. How long will it take for my payoff to show up on my credit report and also if this is the only negative thing on my credit, how much damage have I done to my credit. I do have some student loans out but I was told that student loans kind of boost your credit. At this point I just want to boost my credit up. What are some other ways I can boost my credit?
A lot depends on weather B.O.A. has charged off your account yet or not.
Either way you have done very serious damage to your credit by having several 60-day late payments.
Now if they have only closed the account and not charged it off yet pay this account off in full A.S.A.P. this will show the account as closed by credit granter but will show a $0 balance which is a whole lot better then showing either a balance or a charge off.
If they have charged it off already you have a much larger problem. A charge off is a major derogatory as far as credit is concerned plus it means that you can look for another major derogatory thing to show up on your credit very soon and that will be a collection.
If this happens you can expect to be hounded by the collection company like you can’t believe until you either work out a payment plan with them or they take you to court and sue for a judgment which is another major derogatory that will show on your credit.
As far as boosting your score the only thing that will do that is to establish a good payment history with some other credit granter weather it’s a credit card or some kind of installment loan. You will need at least 24-months of good paid as agreed history for your credit to rebound.
Good luck.
Today’s Mortgage Rates: Which home loan is best?